Location: Southampton County-Franklin city, VA | Metro: Southampton County-Franklin city, VA HUD Nonmetro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,400 | $233,670 | 0.6% | F |
U.S. Census Bureau data (2024)
ZIP code 23828, located in Southampton County-Franklin city, VA, serves as a strategic component within a Section 8 portfolio. It acts primarily as a cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) and the median home value.
The FMR for ZIP 23828 in fiscal year 2024 is set at $1040. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit in this area. Despite the lack of current market rent data, the median home value of $177,617 suggests that property values are relatively stable and affordable. The disparity between the FMR and the median home value indicates that landlords can expect steady and predictable cash flow from Section 8 tenants.
A cash-flow anchor is crucial for any real estate investment portfolio, providing a reliable source of income that can offset the risks associated with other types of investments. In ZIP 23828, the FMR ensures that landlords receive a consistent rental income, which is particularly important given the limited market rent data available. This predictability helps in managing financial expectations and planning for long-term stability.
Additionally, the ZIP code's median income of $63,684 supports the idea of it being a cash-flow anchor. With a moderate income level, there is a balanced demand for affordable housing, making it a suitable location for Section 8 properties. The 6.0% renter share further underscores the importance of rental properties in this area, ensuring a steady stream of potential tenants who rely on government assistance.
In conclusion, ZIP 23828 is best positioned as a cash-flow anchor within a Section 8 portfolio strategy. Its defined FMR, stable median home value, and moderate median income contribute to a predictable and reliable rental income, making it an essential part of a diversified investment approach.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.